Blockchain — the new future for the energy industry?

Potential for the energy industry

Digitization and decentralization are intensifying the break-up of the previously fixed system and process boundaries of the value-added stages and promoting the development of dynamic value-added networks. Households and companies are moving into the focus of the energy system, as they increasingly participate actively in the market through small-scale interactions. However, not only users and consumers will benefit from the blockchain technology. From an economic point of view, the possibility of increasing grid utilization and efficiently organizing the allocation of flexibilities of any size seems particularly interesting. The ability of a blockchain to make even the smallest transactions cost-effective, ultimately means new degrees of freedom, for example, for the provision of control energy, direct electricity trading between market players or shared investments. In combination with the digitization of metrology, blockchain technology supports new forms of product differentiation, concerning generation type, -location and -time. Correspondingly, there are concrete current pilot projects in all stages of the value chain of the energy industry. Examples are the charging infrastructure for e-mobility, the certification of green and regional electricity, electricity concepts for neighbourhood and tenant, the provision of control energy and wholesale electricity.

Blockchain and the Internet of Things

From a perspective view blockchain technology will generate potential in a significant area. The increasing networking of millions of intelligent, autonomous devices promises a new quality of intelligent load control. Here, the blockchain could be the technology that ensures this networking. The link between Blockchain and the Internet of Things (IoT) can play a key role in driving the pace and momentum of this development. A blockchain provides new answers to the outstanding questions of flexible and secure rights management and the secure authentication of devices.

Opportunities for energy supply companies

Blockchain technology offers energy suppliers numerous opportunities. The companies in the industry can actively shape the development and thus secure new roles. The pace of technological development is high, so progress and potential regulatory adjustments should be monitored consistently and conscientiously. In order to exploit the potential, it is recommended that companies gain initial experience with blockchain applications. It is becoming increasingly critical to build and continuously develop in-house blockchain knowledge. This procedure enables fast and flexible utilization of the blockchain potential and its successful further development.